NEW YORK (AP) — Stocks slipped in early trading on Monday on Wall Street as investors weigh mixed signals about the status of U.S. trade talks with China.
Late last week, Chinese officials said both sides had agreed to roll back tariffs if the trade talks progressed. But Saturday, President Donald Trump said that reports on how far the U.S. is willing to go on rolling back tariffs were "incorrect" without elaborating. Investors hope the world's largest economies can make enough progress to avoid another round of tariffs scheduled to take effect next month.
Technology stocks led the decline in the early going. Qualcomm fell 2.7 percent and Micron slipped 2.1 percent. The sector is sensitive to shifts in trade war sentiment as many of the companies rely on China for sales and supply chains. Banks also fell broadly. Citigroup shed one percent.
Bond markets are closed for the Veterans Day holiday. The yield on the 10-year Treasury rose to 1.93 percent late Friday. Investors headed for more defensive positions. Real estate stocks and utilities held up better than the rest of the market. Companies in those sectors are considered safer investments to turn to when economic growth seems threatened.
Still, the market is showing solid gains for the fourth quarter so far. Hopes for a trade deal, along with solid economic reports and corporate profits, have fueled a rally since early October. The S&P 500 index has posted gains for five straight weeks. It reached a record high on Friday.